The current controversial topic in the crypto ecosystem centers on the environment. Well, in the last year a campaign has grown that seeks to raise awareness among users of the crypto world. This is about the impact that cryptographic technology can have on the environment. Therefore, Binance released a statement explaining its vision on NFTs and the environment.
Binance’s official positions regarding controversial regards to the crypto world tend to become practically the central opinion of all crypto users. Even for those renowned analysts, a good base to cite tends to be these official positions that Binance issues.
That is why its official position on NFTs and the environment provide new opportunities for users.
How do NFTs affect the environment?
As mentioned before, major concerns about the impact of NFTs on the environment include allegations that this technology generates high carbon emissions. Since they are produced using energy-intensive proof-of-work (PoW) blockchains like Bitcoin and Ethereum.
However, part of the core of the discussion is that not all NFTs work with PoW models. And many have great potential to shape the modern world, as a fundamental element of the 4th industrial revolution.
Therefore, it is necessary to strike a balance between technological advances and environmental sustainability. This when considering the real benefits that NFTs can have for society and the global economy. So dictated Binance’s official position on NFTs and the environment.
It is important to know that this all started because PoW networks, like Ethereum, are based on mining. It requires large amounts of energy to perform complicated calculations. This using advanced computers and specialized mining hardware.
Therefore, the equipment requires a lot of energy and produces considerable amounts of heat, which generates carbon emissions.
But, the truth is that the NFTs most likely do not have a direct causal relationship with carbon emissions.
Impact of cryptographic technology on the environment, compared to traditional art
According to Binance, if CO2 emissions are to be taken as a benchmark for assessing the environmental impact of NFTs, then tangible art forms have been around much longer. And they have a higher cost to the environment.
Physical forms of art require means of production that involve chemical industries, mineral extraction. They also require precious metal and wood processing. In addition to transportation and many other energy intensive activities.
For this reason, the numbers involved in the environmental impact of traditional art are also much more difficult to calculate, since there are no specific data related to works of art, except provisional statistics.
However, Binance explains that if even just one industry involved in the creation and distribution of traditional art is considered, the carbon footprint of this activity becomes considerable.
Also, the ultimate goal of environmental impact assessment is always to reduce the carbon footprint. Statistically speaking, in some cases, NFT artworks can even have lower emissions than their physical counterparts, even when using PoW blockchains.
This is a clear example that the NFTs and the environment do not really have such a direct impact.
The effort to change this view of NFTs continues
Finally, in an effort to mitigate this impact, many NFT creators and markets are looking for alternatives. And they are continually improving the industry. Major blockchain networks are also joining the cause by transitioning to more energy efficient models like PoS.
The potential for real-world applications for NFT is enormous. It is also clear that any technological innovation will have a corresponding environmental footprint. Be it internal combustion engines, artificial intelligence or smartphones. Everything requires production capacity and energy to function.
But the passage of time leads to improvements in existing technologies. For Binance innovations are essential for progress. So finding a balance is important, and blockchain innovations, particularly NFTs and the environment, are already making headway in that regard.